How do you create a balanced scorecard for your corporate strategy?

1 1. Define your strategic objectives

The first step is to define your strategic objectives for each perspective. These are the outcomes that you want to achieve in the long term, such as increasing revenue, enhancing customer satisfaction, improving operational efficiency, or developing new skills and capabilities. You should have 3-5 objectives per perspective, and they should be specific, measurable, attainable, relevant, and time-bound (SMART).

2 2. Identify your key performance indicators

The next step is to identify your key performance indicators (KPIs) for each objective. These are the metrics that you will use to track and evaluate your progress and performance. You should have 1-3 KPIs per objective, and they should be aligned with your vision, mission, and goals. You should also define the targets, benchmarks, and data sources for each KPI.

3 3. Establish your strategic initiatives

The third step is to establish your strategic initiatives for each objective. These are the actions and projects that you will implement to achieve your objectives and improve your KPIs. You should have 1-2 initiatives per objective, and they should be prioritized, resourced, and assigned to responsible parties. You should also set the timelines, milestones, and deliverables for each initiative.

4 4. Create your strategy map

The fourth step is to create your strategy map, which is a visual representation of your balanced scorecard. It shows how your objectives, KPIs, and initiatives are linked across the four perspectives, and how they contribute to your overall vision and mission. It also shows the cause-and-effect relationships and the dependencies among them. You can use a software tool or a template to create your strategy map.

5 5. Communicate and align your strategy

The fifth step is to communicate and align your strategy with your stakeholders, such as your employees, customers, partners, and investors. You should share your balanced scorecard and your strategy map with them, and explain the rationale, benefits, and expectations of your strategy. You should also solicit their feedback, input, and support, and address any concerns or issues that they may have.

6 6. Monitor and update your strategy

The sixth and final step is to monitor and update your strategy on a regular basis. You should collect and analyze the data for your KPIs, and compare them with your targets and benchmarks. You should also review the status and results of your initiatives, and check if they are on track and delivering the desired outcomes. You should then report your findings, celebrate your successes, and identify your gaps and challenges. You should also make any necessary adjustments or changes to your objectives, KPIs, or initiatives, based on the changing internal or external conditions.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?